On September 3rd, the NJ School Employees’ Health Benefits (SEHBP) and State Health Benefits Programs (SHBP) resumed discussions to finalize the renewal rates for the 2027 plan year, with only the SHBP coming to a resolution.
The SHBP approved the combined rate recommendation for Local Government (LG) Actives, Early Retirees, and Medicare Retirees at a 22.1% overall premium increase — with a portion of the increase slated to repay prior funding obligations and rebuild depleted reserves, rather than just to cover projected healthcare costs.
SHBP Local Government Approved Rate Renewals:
- Active Populations: +17.3% Total Increase
- +16.7% increase for medical
- +20.0% increase for prescription
- Early Retiree Populations: +36.6% Total Increase
- +35.7% increase for medical
- +40.5% increase for prescription
The SEHBP on the other hand, failed to approve any rates for the 2027 renewal year for a second time. The Commission deadlocked in a 4-4 vote on the recommended increases and agreed to reconvene in 2 weeks for another vote.
Benecard will continue to update you on any further developments with the final SEHBP 2027 rate actions as more information is released.
In the meantime, for organizations participating in the SHBP or SEHBP, now is the time to consider whether your current approach is delivering the cost control and financial certainty you need. Contact Richard Van Noord, Vice President of Sales, at Richard.VanNoord@benecard.com or (609) 651-5412 to explore what’s possible.
Sources:
NJ Panels OK Rate Hike for Public Worker Health Plans Deadlock on Increase for Teachers:
Aon’s SHBP “Plan Year 2027 Rate Setting Recommendation Analysis” Local Government Employee Group Report (as approved on 9/3/2026):
https://nj.gov/treasury/pensions/documents/hb/rate-renewal/py2027-rate-setting-analysis-local.pdf
Plan Year 2027 Rate Renewal Reports:
https://www.nj.gov/treasury/pensions/rate-renewal.shtml
SEHBP Financial Challenges Persist Amid Unresolved Premium Rate Decisions – Benecard:
